Dollar Surges as Higher T-Note Yields Offset Dovish Comments

The US dollar index DXY climbed to a 2-month high on Tuesday, finishing up by +0.19%. The rise in the dollar was supported by higher T-note yields, with the 10-year T-note yield jumping to a new 19-year high.

This strengthened the dollar's interest rate differentials and limited gains in the dollar due to weaker-than-expected US economic news on Aug JOLTS job openings and Sep consumer confidence.

New York Fed President John Williams weighed on the dollar when he said the Fed may need only one more rate hike to contain inflation, which is bearish for the dollar.